Page 12 - FDMAsia SepOct 2025

10 MARKET BEATS SEP/OCT 2025 FDM ASIA | www.fdmasia.com

Wood Industry In New sawmills felt the squeeze.

The overseas markets were also unstable, due to conflict
Zealand Confronted With and tariffs.
Hardships “Hopefully, we might see a bit of a glimmer of light in

the future in terms of building consent numbers starting to
climb again, but really, it seems like a distant thing at the
New Zealand timber industry faced with challenges moment,” Ilott said.
The timber industry in New Zealand is battening down the “It’s just batten down the hatches and try to do the best
hatches, as it struggles with low demand, increased running you can.”
costs, and wars and tariffs overseas, according to The New He said the loss of sawmills could be devastating for
Zealand Herald. small towns, where they were often the largest employer, but
One of a prominent New Zealand forest products company despite the tough times, most mills were family businesses,
has announced plans to shut its sawmill and consolidate its and people would not walk away easily.

operations to Kawerau in Bay of Plenty, blaming weak markets.
The closure would affect 142 jobs. The local timber market in New Zealand shows a
Timber Industry Federation executive director Jeff Ilott told sluggish trend
RNZ demand had dropped, with building consents down from According to Farmers Weekly, New Zealand’s timber trade
51,000 in 2022 to 34,000 in the year to June. with China remains stable-to-firm, but local timber markets
The lack of demand, combined with increased running remain slow outside of parts of the South Island.
costs from electricity, compliance and insurance, meant It’s been a month of relative stability throughout the wider

Mike van Schoonderwalt